StarTribune.com
More Americans in deep poverty
By Tony Pugh, McClatchy News Service
2/24/07
WASHINGTON - The percentage of poor Americans who are living in severe poverty has reached a 32-year high, millions of working Americans are falling closer to the poverty line and the gulf between the nation's "haves" and "have-nots" continues to widen.
A McClatchy News Service analysis of the 2005 census figures, the latest available, found that nearly 16 million Americans are living in deep or severe poverty. A family of four with two children and an annual income of less than $9,903 -- half the federal poverty line -- was considered severely poor in 2005. So were individuals who made less than $5,080 a year. The McClatchy analysis found that the number of severely poor Americans grew by 26 percent from 2000 to 2005. That's much faster than the overall poverty population grew in the same period.
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The plight of the severely poor is a distressing sidebar to an unusual economic expansion. Worker productivity has increased dramatically since the brief recession of 2001, but wages and job growth have lagged behind. At the same time, the share of national income going to corporate profits has dwarfed the amount going to wages and salaries. That helps explain why the median household income for working-age families, adjusted for inflation, has fallen for five consecutive years. These and other factors have helped push 43 percent of the nation's 37 million poor people into deep poverty -- the highest rate since at least 1975.
The share of poor Americans in deep poverty has climbed steadily in the last three decades. But since 2000, the number of severely poor has grown "more than any other segment of the population," according to a recent study in the American Journal of Preventive Medicine. The growth, which leveled off in 2005, in part reflects how hard it is for low-skilled workers to earn their way out of poverty in an unstable job market that favors skilled and educated workers. It also suggests that social programs aren't as effective as they once were.
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